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    Developing a systematic strategy building process

Case study: Scenario-based Strategizing

Developing a systematic strategy building process for the Indian enterprise connectivity market

Situation

Tata Communications (TCL) is a global telecommunication company, which has evolved from a wholesale service provider in the Indian market to the leading provider of communication services for enterprise customers worldwide. 

In the past, TCL relied on a set of established strategic approaches that helped them prepare effectively for domestic markets in a steady environment. However, recently this once stable environment has been disrupted by international entrants, investing heavily in new services and technologies. TCL’s existing strategy approaches were not designed to work under high levels of uncertainty as they do not consider the systemic effects of change drivers that disrupt traditional industries. TCL partnered with Rohrbeck Heger to pilot scenario-based strategizing with a time horizon of 5 years to face the high levels of uncertainty.

 

Approach

The project approach confronts TCL’s current and newly developed strategy alternatives with multiple possible future scenarios to create a Strategizing Dashboard. This includes a set of change drivers, scenarios, a strategic decision matrix and assessed strategy alternatives, which altogether provide the means to manage an uncertain future. 
Rohrbeck Heger used internal sources, interviews, and external sources consisting of expert interviews, studies, and reports to identify relevant trends and key drivers of the Indian Connectivity market. Based on these insights 4 consistent and plausible connectivity scenarios have been developed in parallel to a range of strategy alternatives together with TCL.
Eventually, goal efficacy – which describes the performance of a strategy within a scenario – and robustness – which describes the performance of a strategy across all scenarios – have been evaluated in order to identify a superior strategy in line with the long-term vision.

 

Results

The applied approach has prepared TCL for future change by implementing a monitoring system to continuously evaluate indicators, tipping points, key drivers, scenarios and consistent strategy options.
Rohrbeck Heger helped to create an increased systemic understanding of the environment and how to continuously use foresight processes to monitor change.
TCL has taken the first steps towards the implementation of a high-performance and resilient strategy building process to sustain a competitive advantage over time.

 

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